Direct care providers see benefit of $15 wage; but state help needed

Non-profits are facing uncertainty as the debate over whether workers should be paid a $15 minimum wage rages.

But Steven Kroll seems ready for a higher wage — assuming the state ponies up additional funding organizations that employ direct support professionals need to pay it.

“We’re in a conundrum, which is that we already have workforce challenges and those workforce challenges would become more severe if we are left behind as other people in the workforce start to see the lower end of the wage scale increase and we’re not able to match it,” said Kroll, executive director of the state ARC, which supports those with intellectual and developmental disabilities. “But the only way we’re able to match it is if the government, through the Medicaid program, increases our rates.”

The challenges that Kroll and those in the direct support professional field face are similar to what others in the nonprofit and other sectors face as the state moves forward with giving some workers a higher wage and lawmakers are poised to consider the $15 number for all workers during the upcoming legislative session.

There are concerns that raising the low end of the pay scale will mean those on the higher end of the pay scale will want raises. There are concerns that if fast food and state and local government employees make $15, employees in other fields might gravitate to where they can get a higher paycheck.

Kroll and others in the field cite high turnover rates as a challenge they already face. In a survey report released by ARC and six other organizations, the state’s direct support providers say the vacancy rate is about 8 percent and with that comes the need for more than 2.9 million hours of overtime per year.

Presumably, if state officials OK the $15 wage — as is being proposed by Gov. Andrew Cuomo and has been passed by the Democratic Assembly — it would help take care of both of those issues.

But non-profits face another concern: Where the money will come from to pay for raises.

The reliance on Medicaid funding (or other governmental funding sources for other types of nonprofits) means the state also would have to carve out a larger piece of the budget to help pay those salaries.

For now, the organizations are leaving their desired bump in funding ambiguous. Their report states that the budget should include Medicaid funding to increase wage for direct support professional and other developmental disability support workers (divers, cooks, maintenance workers) a “commensurate amount” to the first stepped increases fast food workers will get at the end of this year and next year.

(The wage will go up to $10.50 for New York City workers at the end of this year and $9.75 for workers elsewhere. It will increase to $12.00 in the city and $10.75 elsewhere at the end of 2016).

But consider that direct support professional organizations have felt squeezed by freezes of state funding in recent years. Kroll said a four percent increase has rolled in over the past two years.

“We don’t need to get to the wage that it’s going to be at the full implementation … right now,” Kroll said. “We have to make progress that is commensurate with progress that is being made (in other sectors). So we need to be able to keep up with it, but we don’t have to do it all at once.”

“So of course for the estate that has to consider this, this gives them the opportunity to figure out … how to make adjustments to Medicaid over that same time frame as opposed to having to do it all at one time,” Kroll said.

JAB, you’re missing the fact that when we increase the Minimum Wage, Working Class people have more money to spend, and this creates customers for small business.
Many small business owners support a Minimum Wage increase.
Many pay significantly above the current Minimum Wage, and they are competing with the Billionaire corporations like WalMart who pay poverty wages. It is the Billionaire Class like the Walton family who are the main opponents of a Minimum Wage hike, not small businesses, who as part of our communities, have more connection to the needs of Working Class people.

Sammy, you fail to realize that while the lowest class of people have money to spend, those slightly above minimum wage now suddenly have less buying power. The prices for goods and services have to go up in one way or another to account for that increase. Sammy, you seem adamantly against the Walton family that owns Walmart, but most businesses are not Walmart with their large corporate backing. Many are just people who worked and saved up and opened a restaurant, or some other sort of business because that was their hope and dream who now are going to be saddled with a higher cost.

JAB, those slightly above Minimum Wage ALSO will have their incomes increased when the Minimum Wage is raised. It is a raise for the Working Class.
Prices do not necessarily rise commensurately.
The profits of the Billionaires like the Walton family are reduced, and Working Class people have more spending power.
You’re right, most businesses are not behemoths like Walmart,
These small businesses do BETTER when the Minimum Wage is raised; they can better compete against the greedy Billionaires who are wages low.

Are you kidding Sammy? No they won’t. I had a friend who works two jobs to provide for his family. He had a part-time job at a fast food restaurant in addition to his regular job. Well, after being there for about 3 years and getting several raises…. last year’s minimum wage increase brought all new hires up to the wage he was making. He did not get a single cent above them. That’s the reality. You just fail to realize it.

JAB, you can talk anecdotally about your friend, but studies show that overall, when the Minimum Wage increases, it creates a ripple effect that raises wages for many others, see http://equitablegrowth.org/raising-minimum-wage-ripples-workforce/
Or do scientific studies mean nothing to Republicans when they conflict with the interests of the Billionaire Class?

Sammy, who has done these “studies”? Please cite your sources? An increase in the single largest expense of a business which is WAGES, causes PRICE INCREASES. I do not know where you get your information but at best it is not something that can be applied in the real world.

I wouldn’t know Sammy. Why don’t you just find a Republican and ask them? You definitely put the first three letters in assume when you assume everyone who has an opposing viewpoint to your own has to be a republican.

Direct care providers perform an important service. They should be paid a decent wage.
If they can pay their bills and have a decent life, they will be better employees.
And if Medicaid or other government funding has to increase to pay these providers a living wage, we can reverse a bit of the massive tax giveaways to the rich to easily pay for it.

@sammy: The Min Wage Class is around 5% of population. The Middle Class is around 50% of population. Every time the Min Wage Class gets a 91% raise and the Middle Class gets a 2% raise, the Corporate Class (Cuomo) throws victory parties. This effort is not primarily undertaken to help the Lower Class (which it does); the true motive is to indirectly assault the shrinking Middle Class and move more of them into the Min Wage Class. #feelthebern ???

Min Wage? – you take the cake for Republican “logic” today.
You claim the Corporate Class throws victory parties when the Minimum Wage is increased.
Is that why the Corporate Class, such as the Walton family, the Koch brothers, & other Billionaires, all fund Republican politicians who OPPOSE raising the Minimum Wage?

Good point Sammy, so let me modify my logic to counter: Most of the Billionaire Class benefit by suppressing the Min Wage Class. Some of the Billionaire Class primarily benefit by suppressing the Middle Class wages. At this point in time the Billionaires that enslave the Middle Class have paid Cuomo more than the Billionaires that enslave the Min Wage Class; hence his recent “push” for $15/hr.

Direct care providers are not paid well and should be paid at $15 an hour. Likely this would mean higher insurance payments though. It is incredibly inane that there is a movement to increase fast food workers’ pay when so many skilled workers in many more important areas are paid so much less. I don’t want high paid fast food workers; it’s a temporary job not meant to last one’s whole working life. I want higher paid care providers and other workers who actually provide an important service.

Sammy’s explanation is well articulated and well-founded in favor of a boost to wages for lower salary direct care providers. Reality may not reflect this logic because of the irrepressible grab for dollars by many big corporations. The reference to use of Medicaid payments for higher salaries of direct care workers who provide essential health care services is particularly relevant. Revisions in Medicaid long term health care assistance and the change to managed health care as a result of Affordable Care Act (ACA) legislation, have not yet realized the hoped-for enhancements of care giving standards for either the direct care workers or the clients. Managed Care Organizations that contract their health provider services, carve out preferred populations from the Medicaid client base, receiving monetary incentives that have not been directly tied to mandatory support service levels, on either a qualitative or quantitative basis. In fact, as documented, trends toward decreased long term care assistance through Medicaid occurred after managed care contractor realignments, with reductions in care extended to home bound patients who had demonstrable needs for such support. Managed Care Organizations should ideally allocate these monetary incentives to pay higher salaries for their agency care givers and to maintain the qualitative/quantitative care for their clients. The success of such a transition is uncertain as yet. Advocacy for improvements to long term care assistance through Medicaid in New York State is active and can be read about through the following site link: http://www.wnylc.com/health/news/39/ Reference article: July 2014 New York Legal Assistance Group (NYLAG) Files Class Action Complaint Against New York State Department of Health …

Republicans seem to be coming up with any excuse to oppose raising the Minimum Wage.
They claim it won’t help those currently earning over the Minimum, they claim, it will somehow hurt the Working Class.
Let’s face it – if the Billionaire Class benefited from a Minimum Wage hike, Republicans would come up with every excuse to support it.

Interesting. We have people homeless, jobless, and/or receiving public benefits. At the same time, we have people on Medicare and Medicaid being forced into extremely expensive nursing homes simply because they aren’t able to cook, clean, launder, shovel snow, etc. for themselves. Anybody see an opportunity here?
So, “Jane Doe”, a homeless single woman with no criminal record or substance abuse issues, signs a contract with Social Services. She gets a roof over her head in exchange for being a live-in companion for “Mary Roe”, an elderly woman of sound mind but not-so-sound body, on Medicaid, who just needs a set of hands to be able to live independently. They both keep their benefits, and the taxpayers win on both ends- Jane gets a roof at no cost, and Mary stays in her home at no additional cost. Note that Jane isn’t bound into servitude here. Her work requirement would be 45 hours per week, since she lives where she works (otherwise it would be 40 hours.) The rest of her time is her own, to look for work, educate herself, etc. This type of arrangement would lend itself extremely well to a flexible work schedule also.
The same situation would work for a homeless, jobless but otherwise healthy Veteran and a disabled Veteran. Pair them up.

I haven’t seen anyone who has any reasonable explanation for how we, as a state, are going to be able to pay for higher wages. I’m not interested in arguing the merits of which jobs deserve $15/hour and which don’t. But if suddenly everyone goes up to $15, how will that be absorbed into the economy? Specifically, how will the state and counties accommodate the higher Medicaid funding increases needed to support those wages? In the county where I live, Medicaid makes up 2/3 of the county budget. We’re already one of the highest taxed counties in the state, which is one of the highest taxed states in the country. I just don’t see how NYers can absorb this. If my taxes go up 10-15% to help pay for this then wouldn’t that be equivalent to giving everyone in the state a 10-15% salary decrease, even those who are making minimum wage?

Lou, the economy can easily absorb a Minimum Wage increase to $15.
Simply, the Working Class gets a raise.
This stimulates the economy.
The Billionaire Class makes a bit less in corporate profits.
If we reverse some of the lavish tax giveaways to the rich, we can pay additional Medicare costs.
It’s not that complicated.

Sammy, where did you get the information that the economy can absorb this $15 min. wage you want business to pay? Here is some news for you. A business man is entitled to earn a REASONABLE return for his/her investment? Or don’t you care if they can even continue in business?

Same old same old. A proposal to increase wages but no idea of how the money will be come up with by the people who are the employer. With such a massive wage increse would come INFLATION of the cost to the consumer of the service. The Left seems to think that money grows on trees.

Money doesn’t grow on trees. It gets taken by the 1% Corporate Elite, the Billionaire Class. And we need more of it to go to the 99%. Over the past few decades, the Billionaire Class has dramatically increased its wealth while the Working Class has stagnated.
The Billionaire class is already charging the Working Class as much as it can get away with. If their costs go up because Billionaire corporations like Walmart have to pay a living wage, the Billionaire Class like the Walton family won’t make as many billions in Corporate profit, but they can’t raise prices if people are not going to pay it.
Why do Republicans always come up with excuse after excuse (this time it’s inflation) when they are siding with the Billionaire Class in screwing the Working Class?

Sammy, you have to be kidding. The Fast Food industry is most owned by FRANCHISEES. Most Nursing home are owned by SMALL BUSINESS people, not the 1% you are talking about? There people are NOT “billionaires?”

If people commenting on this topic read the article from the link which I earlier referenced in my first comment, (http://www.wnylc.com/health/news/39/), they will see that even when money has been awarded to employers, the money doesn’t necessarily trickle down, (I have cited above the example of Managed Care Organizations receiving”incentives” to deliver health care services – which would include paying their home health aides a wage deserving of training, experience and impact on those who are ill and home bound). Since there had been no mandatory tie to the awarding of incentive money to contractors of Medicaid health care services and the hours of care a patient may receive based on his/her condition, a “selection” process was initiated by the largest and most lucrative Managed Care Organizations to sign up Medicaid patients with fewer health needs in order to save money. In cases where the clients have health issues that warrant more attention (and who previously received more visits by home health aides), there have been sad cuts to home care services delivered to these people, even though their health has not improved.

If there are fewer resources dedicated to clients as a result of reduced home care, there are more monetary savings to the Managed Care Organizations as contracting employers. The home health aides on these cases may work fewer hours (or are assigned hours to other clients), allowing the dollars to stretch further among more clients. The incentive money can then be applied elsewhere, Where do you think the “incentive” money goes? In some cases, Managed Care Organizations may voluntarily use their monetary incentives to increase salaries of their home health workers, but there are contractors that do not redistribute these extra dollars for compensation of workers or improvement of services.

People may think the above circumstances are justifiable and only a matter of ‘business sense.’ I only hope those who believe this way, will never find themselves in a vulnerable situation where they are at the mercy of corporate entities that may not prioritize their well-being or the well-being of staff who are relied on for services. The New York Legal Assistance Group sees a larger issue with such practices and have therefore pursued this matter through the courts, as described in the referenced article. If a government entity has funded incentives to corporate health care contractors and those dollars may not result in improved worker wages or health care services, why would for-profit employers that ruthlessly adhere to the bottom line (like Walmart), be motivated to compensate employees fairly? It doesn’t always happen voluntarily in this current climate.

As a shout-out to “Forgotten Man,” you have forgotten that statistically, we have more wage earners working two and three jobs now than at any other time in recent history because many employers are not compensating employees with legitimately earned salaries for their work and productivity. People who work hard in this economy and contribute to the profitability of their employers – whether it be in the health care industry, retail, or fast food services – deserve to be legitimate partners on the receiving end of the rewards. It is shameful that too many employers require mandates to fairly administer their employee wages and services.

StraightTalk, Your source is that is a Left wing media outlet. Just because they say it does not make it so. If these people want higher wages, they can get an education and get better jobs? Or they can develop a skill and work elsewhere? No one’s arm is twisted to work in the Health Care industry? Or in the Fast Food Industry. I would suggest that you teach some of these people something we commonly refer to as PERSONAL RESPONSIBILITY?

And don’t forget that these Evil Corporations are owned in large part by folks who have their retirement savings invested in the stock market. (Which is why Wall Street wants low interest rates, to drive more capital into stocks.) And how much exposure do pension funds- like New York’s- have to the effects of the minimum wage increase? That affects us all, because when stocks go down, taxes go up to plug the hole in the pension fund.

Personal Responsibility? We are talking about people who don’t steal or mooch but go to WORK. That is being responsible. And people who work a full time jobs should NOT have to live in poverty.
What about the Responsibility of the Employers? They are responsible for paying workers a decent wage.
Why do Republicans always criticize Working Class people, but never call for the Billionaire Class to be responsible?

Personal responsibility does not just mean doing what your are supposed to do, but it includes doing things to BETTER YOURSELF. The Left is too easy to give these people a pass on that responsibility. Just like you are right here and now.
Everything I have, I have EARNED. Nobody gave me something for nothing. You see, Sammy, there is no such thing. Somewhere, someone has to pay for your wanting to give these people what they have not earned. An employer only has the responsibility to provide a service for the customers through his employees. How he does that is up to him/her and no one else. If you do not like the wage that your current employer is paying you, get a better education or skill and find another job. If they try it, they might even like it.

You are talking about people who do not understand personal responsibility and getting a better job or some education to get a better job?? They want it handed to them because they THINK they are entitled.

T Wayne,
You assume that there will be a McD’s left to place your order.
While all the leftists blather about the billionaire class keeping the poor working folk down and cite biased study after biased study, they will be the only ones left in NYS to support the 53% that is not working. I am certain that number will continue to rise as more taxpayers like yours truly leave the overtaxed cesspool of burdensome regulation. There are states that are more respectful of the tax payer, and I am enjoying not paying a significant chunk of my salary to the King of The Progressive Left Kuomo. And don’t even think about crowing about “services” leftists… it is a circular argument

If we raise the Minimum Wage in NY, Working Class people here will have more money to spend, businesses will be coming here for those consumers, and there will be more people and more money in NY.
Look at Seattle. They raised the Minimum Wage to $15 and their economy improved.
And if we tax Wall St, close Corporate loopholes and raise taxes for the Rich, we can lower taxes for the Working Class, particularly property & school taxes. This too will being bring more people and more money to NY
Republicans who hate the Working Class, you can leave, have a nice life.
Maybe you can find a nice Republican paradise where there is no Minimum Wage, no consumer or environmental protection, hardly any taxes for the rich, and hardly any public services. What about Somalia?

“Personal Responsibility” is what drives people to work in abusive situations, only to be paid far less than the worth of their SKILLS, time, and productivity. Corporate Responsibility should encompass fair pay for the skills, time, and productivity of workers in all industries, without the need for labor boards to enforce laws which corporations routinely break.

Is it “RESPONSIBLE” for Walmart – and other profitable corporate entities (such as banks) – to pay their workers such low wages they qualify for food stamps in order to feed their families? Many Walmart store associates and bank tellers rely on supplemental nutrition programs to make ends meet. The government is then in the position of subsidizing mega businesses, so their profits are on the taxpayer’s back. The general public (including those who would never utilize the services of these corporations) should not be subsidizing their fortunes because they don’t pay workers fairly.

It is truly ironic that the 1% er sympathizers will never begrudge the massive tax breaks and loopholes extended to corporate businesses and their owners, but if an employee working 2 jobs at $8/hour is battered physically and economically as a result of long hours and below-subsistence level wages, that worker is perceived as lacking personal responsibility because he/she is not better equipped to earn higher salaries. Try to figure out a way to fit continuing education into a 2-job schedule and without disposable cash for tuition. Oh, there’s always the student loans one can get from banks which are the equivalent to usury. After falling into debt from incurring these loans, one can still remain underpaid or underemployed, despite the education one has sacrificed to obtain. If labor market statistics are scrutinized by those who are confident only uneducated workers receive low wages, there would be an understanding of the large percentage of educated workers (undergraduate degree and higher) who are not fully employed.

Profiteering by corporate moguls that intentionally pay workers as little as they can (until ‘competition’ may pry the fingers from their wallets), is not responsible, nor is it good business practice. People will leave such jobs for smaller businesses if pay scales are raised and smaller business owners will benefit from a greater labor pool. Many consumers also patronize businesses based on the ethical standards these businesses adhere to; bargain prices are not the only determinants.

Health care workers who are underpaid – although they have tremendous responsibilities for patients whose lives depend on their care, training and knowledge – would be more proficient in monitoring patients if they are not sleep-deprived after finishing a second job, only to report to another bedside in less than a clear state of mind to administer medications and notice symptoms. Life and death situations are not liberal or conservative, and the methodology behind patient protections should be based on cause and effect. Longer hours as a result of holding multiple jobs at lower wages, are prescriptions for bad decisions and potentially life-threatening errors in the delivery of healthcare services.

During this season where we should be more mindful of others who experience economic adversities, we must remember that we are all children of God and merit the respectful acknowledgment of our worthiness. In our society, that should translate into better wages and living conditions for those who are truly striving for a better life.

Here’s a crazy idea: Stop withholding taxes from the meager paychecks of the working poor. That includes the Social Security and Medicare taxes, too. Remember, that’s 7.65% on both the Employee and Employer, for a total of 15.3% Repeal the employee portion, but require employers to give each affected employee a 7.65% raise. Minimum wage will be raised by 7.65% also. That would put New York at $9.42 an hour. Add in the repeal of the employee portion, and that puts as much in the pockets of the working poor as raising NY’s minimum wage to $10 per hour.
And let’s set the tax rate for all income below the poverty line to ZERO. I believe only Donald Trump and Bernie Sanders are proposing this. If your income, based on number of dependents, is below that line, you have zero dollars deducted from your pay, and you don’t have to file. Right now, if you have money taken out of your checks, but get it all back after January 1, you are subsidizing Uncle Sam by giving him an interest-free loan.
Next, we need to reform our broken welfare system, so that no one ever again finds themselves in the “Welfare Trap.” You want to go to work, but if you do, you lose more in benefits than you gain in wages. Why break your back working two jobs when you enjoy a better standard of living by not working? Oh, and why not fill the need for all these taxpayer funded low-wage jobs with people receiving benefits? Once we reform the system, it will be cheaper for the Government to hire welfare recipients into minimum wage jobs than to maintain them on the dole.

You do realize that 95% of your comments have absolutely nothing to do with the post, correct? That ARC’s are not private businesses? That there no such thing as a “BIllionaire Class” owned ARC (or similar agencies)? That these critical social agencies have zero ability to simply raise the prices, but are instead completely beholden on a government payor, and in a state where there has been a concerted effort to quash any increases in funding?